Logbook loans are the ones that are approved by treating the logbook of automobiles as a security for the loan amount. The logbook of a car is a vital document that contains numerous details like the chassis number, owner of the car, current registration mark etc. So a car or automobile owner can use this to secure a loan from a major lender in the market. These are generally short term loans that can be secured within a very short time period without going through the long documentation process.
Cars or automobiles have long been used for pleasure or official transport mediums but now they are even being used as guarantee for a loan. It is now possible to secure a loan by using the logbook of a car. These loans are known as the logbook loans and the owner of a car can use the logbook to secure a short term loan. These loans are secured loans and the rate of interest on these loans is quite affordable. The logbook loans can be acquired in the form of quick loans and even the long and tedious documentation or verification process can be bypassed.
Bad credit is not a hurdle for logbook loans as the loans are approved based on the logbook of a car owned by the borrower. The logbook consists of the details like registered owner of the vehicle, registration mark, engine number, model number, color etc. These are vital information and when the borrower uses this vital document as a security, the loans are automatically secured. Lenders treat the logbook loans and low risk loans; hence, the loan rates too are kept at an affordable limit.
The borrower is free to drive away with his car after submitting the logbook and resume life as usual without worrying about the documents. The logbook is returned once the loan repayment is done within the agreed time period or loan term. This loan is suitable for the borrowers who do not have a very impressive credit score – credit checks are completely bypassed during the approval of logbook loans. Car owners stand a great opportunity of meeting sudden or planned expenses by availing the logbook loans but there are a few pre-requisites for securing such loans.
Logbook loans are approved only when the car is registered in the borrower’s name and the vehicle does not have any pending payments. All the dues pertaining to the car should be cleared before applying for logbook loans. Also the vehicle should not be older than 8 years as cars older than this are not treated as collaterals. Some lenders even insist on the borrower’s income proof but there are many who do not consider this to be mandatory.
Online application of logbook loans is possible but the borrowers should read the terms and conditions prior to applying.